Page 256 - The Persian Gulf Historical Summaries (1907-1953) Vol III

251

Article 6
The Company may also at any time during the Option period declare in
writing its intention to take up the concession over the Leased Area, as herein
contained, in which case the Company shall in addition to any sums which may
still be due to the Sultan under Article 4 pay to the Sultan—
(0) on signature of such declaration rupees One hundred thousand;
lb) at the end of each year of the first five years from the date of signature
of such declaration rupees Eighty-four thousand or rupees (3) three
per English ton of 2,240 lbs. in respect of the Substances freed of water
and foreign matter won and saved during the preceding calendar year,
whichever is greater;
(c) at the end of the sixth and every subsequent year from the date of
signature of such declaration, rupees Ninety-six thousand or rupees
three (3) per English ton of 2,240 lbs. in respect of the substances won
and saved during the preceding calendar year, whichever is greater;
id) Anna 2 (two) per 1,000 cubic feet of natural gas exported and sold.
In calculating royalty for the purpose of this article account shall not- be
taken of any of the substances used by the Company in its operations or used by
the Company’s employees within the Leased Area, nor of any water or foreign
matter which may be produced with the Substances.

Article 7
In consideration of the payments prescribed in Article 6 the Sultan hereby
grants to the Company for the remainder of the period of this Agreement the
exclusive right to explore, search for, drill for, produce, win, refine, transport, sell,
export and otherwise deal with or dispose of the Substances and to do all things
necessary for all or any of the above purposes within the Leased Area.

Article 8
The Company shall not carry on any operation within areas occupied by or
devoted to the purposes of mosques, sacred buildings or graveyards. Fortified
areas or areas occupied by forts or barracks to be excepted.
Article 9
The Company shall conduct its operation in a workmanlike manner and by
appropriate scientific methods and shall take all reasonable measures to prevent
the ingress of water to any petroleum-bearing strata and shall duly close any
unproductive holes drilled by it and subsequently abandoned. The Company shall
keep the Sultan informed generally as to the progress and result of its drilling
operations but such information shall be treated as confidential.

Article 10
Within three months after the expiry of the calendar year in which the
Company has declared its intention to take up the concession, and of each subse­
quent calendar year, the Company shall deliver to the Sultan a statement of the
amount of the Substances won and saved during the said calendar year and of
the royalty which is or might have been payable under Article 6, together with
areport of its operations during the said year. The Sultan or his representative
shall have the right to check such returns and statements, and all such returns
and statements and the reports of the Company’s operations shall be treated as
confidential by the Sultan.
Article 11
(?) The Company shall have the right to import water, the Substances, fuel
machinery, motor cars and lorries, aircraft, equipment, plant, timber, utensils,
u’®n work, building materials, food supplies, medicines, medical supplies,
ornce equipment and household furniture, and other materials, equipment and
goods of whatsoever nature required by the Company and its employees for the
Purpose of its operations hereunder and to export the Substances and articles
previously imported by the Company free of customs or export duty and taxes or